The Xero Ltd (ASX: XRO) share price closed well in the red on Tuesday amid a rough day for ASX tech shares.
At market close , Xero shares finished at $83.00 each, a 5.71% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 0.56% lower today.
So why did Xero have such a tough day on the market today?
Image source: Getty Images
Xero shares close lower
Xero shares struggled today but they were not alone. The S&P/ASX All Technology Index (ASX: XTX) also closed 2.2% in the red.
Other ASX tech shares that took a hit included Megaport Ltd (ASX: MP1), down 4.29%, and Wisetech Global Ltd (ASX: WTC), down 4.91%. Meantime, Altium Ltd (ASX: ALU) shares fell 1.09% while Block Inc (ASX: SQ2) descended 2.93%.
Xero is a New Zealand technology company with a global presence providing accounting software to small and medium-sized businesses.
Today's fall follows a tough night on US markets. The technology-heavy NASDAQ fell 1.46% on Monday's trade, while the S&P 500 dropped 0.84%. Apple Inc (NASDAQ: AAPL) shares dropped on the back of a Reuters report that the tech giant plans to slow hiring and spending next year.
Nonetheless, Citi has a buy rating on Xero's shares with a $108 price target. Citi recently said:
We see Xero's decision to increase prices in ANZ and UK as an indication of the company's confidence in its position in its core markets.
Goldman Sachs also has a buy rating on the company's shares with a $113 price target.
Share price snapshot
Xero shares have declined 40% in the past year while they have fallen nearly 42% year to date.
In the past week, the company's share price has dropped 1.5% although it's gained nearly 13% in a month.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has slid about 9% in the past year.
Xero has a market capitalisation of about $12.4 billion based on today's share price.
